MENU

Top brokers name 3 ASX shares to sell today

On Thursday I looked at a few shares that have found favour with brokers and been given buy ratings this week.

Today I thought I would look at a few shares that have fallen out of favour and been given sell ratings by brokers.

Three that caught my eye are listed below. Here’s why they are tipped as sells:

ALS Ltd (ASX: ALQ)

According to a note out of Deutsche Bank, it has downgraded the testing services company’s shares to a sell rating with a $6.99 price target. The broker made the move due to concerns over the company’s resources business’ ability to sustain growth above the industry average. Further, the broker believes that its Life Sciences segment is being impacted by price pressures in key markets. As such, it thinks that ALS’ shares are expensive given its current growth profile. I would have to agree with Deutsche Bank on this one and suggest investors stay clear of ALS until it trades on a fairer valuation.

Myer Holdings Ltd (ASX: MYR)

A note out of UBS reveals that its analysts have retained their sell rating and cut the price target on the embattled department store operator’s shares down to 37 cents. The broker cut its price target after Myer’s recent sales update came in below expectations. UBS appears to have been surprised by the weakness after the company had previously noted improved second half sales trends. I don’t think Myer’s shares are investment grade anymore and would suggest investors follow the advice of UBS.

Treasury Wine Estates Ltd (ASX: TWE)

Analysts at Citi have retained their sell rating and $13.30 price target on the wine company’s shares following recent reports of a supply glut in China. The broker doesn’t appear overly concerned by the reports and has retained its sell rating on valuation grounds. Citi doesn’t believe that Treasury Wine Estates’ valuation is befitting of its current growth profile and points to its reliance on margin expansion rather than sales/volume growth as a concern. While I think Citi makes some valid points, I wouldn’t be a seller of shares if I owned them and would even consider buying some on recent weakness.

While those may be sell-rated shares, these top stocks are certainly buy-rated in my opinion.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Treasury Wine Estates Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.